Alabama Legislature Oks tax breaks for individuals, business

MONTGOMERY -- The Alabama Legislature has wrapped up its special session by approving tax breaks for individuals and small businesses.

The Senate gave final approval to a bill Saturday that will make sure Alabamians don't have to pay state income taxes on their federal economic incentive checks. That will save taxpayers $30 on a $600 stimulus check and $60 on a $1,200 stimulus check.

The Senate also gave final approval to a bill that will allow businesses with less than 25 employees to deduct from their state income tax 150 percent of what they spend on employees' health insurance. Workers at small businesses would get the same deduction for their payments toward health insurance. The deduction has been 100 percent.

The Legislature is paying for the $33 million tax break by closing loopholes that some large national corporations use to pay less state income tax in Alabama.